Dexcom Raises 2026 Outlook as Q3 Revenue Grows 11% to $1.344 Billion

DexCom, Inc. (DXCM ) reported revenue of US$1.344 billion for the third quarter ended September 30, 2026, an 11% increase from $1.209 billion a year earlier, and paired the results with a raised full-year 2026 outlook and a new share repurchase authorization of up to $1.0 billion, according to Dexcom’s third quarter 2026 earnings release published on October 29, 2026.

Organic revenue, which excludes the effect of foreign currency fluctuations and of non-CGM revenue acquired or divested in the trailing twelve months, was $1.346 billion, also up 11% year over year; the organic figure excludes $1.7 million of foreign exchange impact and $0.7 million of acquired non-CGM revenue. U.S. revenue grew 14% and international revenue grew 5% on a reported basis, with international revenue also up 5% on an organic basis, the company reported.

By geography, third quarter U.S. revenue totaled $969.8 million, up from $851.9 million in the third quarter of 2025, while international revenue was $374.7 million versus $357.4 million. Distributor-channel sales accounted for $1,148.0 million of the quarter’s revenue and direct-channel sales for $196.5 million. For the first nine months of 2026, revenue totaled $3,844.8 million, compared with $3,402.4 million in the prior-year period.

Margins and Earnings

GAAP gross profit was $864.4 million, or 64.3% of revenue, compared with $731.4 million, or 60.5%, a year earlier. Non-GAAP gross profit totaled $875.3 million, or 65.1% of reported revenue, versus $741.3 million, or 61.3%. GAAP operating income was $327.2 million, or 24.3% of revenue, an increase of 420 basis points from $242.5 million, or 20.1%, in the third quarter of 2025; non-GAAP operating income was $339.5 million, or 25.3%, up 270 basis points from $272.9 million, or 22.6%.

GAAP net income was $275.1 million, or $0.72 per diluted share, compared with $283.8 million, or $0.70 per diluted share, in the prior-year quarter. Other income, net, was $7.5 million versus $109.8 million a year earlier, and the company’s reconciliation tables show the 2025 quarter included $82.7 million of income from equity investments. Non-GAAP net income rose to $275.0 million, or $0.73 per diluted share, from $242.5 million, or $0.61. The 2026 non-GAAP figure excludes $11.9 million of amortization of intangible assets, $0.4 million of business transition and other significant items, and $12.4 million of tax adjustments. Adjusted EBITDA was $435.2 million, versus $368.4 million a year earlier.

Operating expenses included $161.6 million of research and development spending, versus $157.5 million in the prior-year quarter, and $375.6 million of selling, general and administrative expense, versus $331.4 million. Footnotes to the reconciliation state that the 2026 business transition items relate primarily to rent for vacated office space in San Diego, California, while the 2025 items related primarily to workforce reduction costs associated with organizational realignment and rent for vacated office space. Dexcom’s stated non-GAAP policy also excludes third-party litigation costs incurred in connection with its patent infringement litigation against Abbott Diabetes Care, Inc.

For the nine months ended September 30, 2026, GAAP net income was $723.7 million, or $1.87 per diluted share, versus $569.0 million, or $1.42 per diluted share, in the prior-year period. Nine-month operating income was $900.8 million versus $588.8 million, and Adjusted EBITDA was $1,221.0 million versus $926.4 million.

2026 Guidance, Buyback and Liquidity

Dexcom raised its fiscal 2026 revenue guidance to $5.20 billion to $5.25 billion, representing approximately 12% to 13% growth, reiterated non-GAAP gross profit margin guidance of approximately 64%, and increased its fiscal 2026 non-GAAP operating margin guidance to approximately 24% and its Adjusted EBITDA margin guidance to approximately 32%. The company stated it has not reconciled the forward non-GAAP measures to GAAP because certain items that affect them are uncertain or outside its control and cannot be reasonably predicted. In conjunction with the third quarter results, the company announced a share repurchase authorization of up to $1.0 billion.

As of September 30, 2026, Dexcom held $1.82 billion in cash, cash equivalents and marketable securities, and its revolving credit facility remained undrawn; the balance sheet shows $961.4 million of cash and cash equivalents and $856.5 million of short-term marketable securities. Total assets were $6,238.8 million, and treasury stock stood at 39.7 million shares, up from 25.9 million shares at December 31, 2025. The company said the cash balance represents significant financial and strategic flexibility as it expands production capacity and explores new market opportunities.

Among the quarter’s strategic highlights, Dexcom said that subsequent to the quarter it published the CONNECT randomized clinical trial in The New England Journal of Medicine, which the company said showcased outcomes driven by Dexcom G7 that redefine the standard of care for people with Type 2 diabetes not on insulin. The company launched a fully redesigned Stelo experience with enhanced glucose insights, simplified meal logging and more detailed nutritional information, advanced the U.S. rollout of the Dexcom G7 15 Day System, and secured its first two G7 15 Day international regulatory clearances.

“This quarter, we continued to build momentum across the business, delivering strong revenue growth and margin progression, strengthening our clinical evidence, and advancing key product and operational initiatives,” said Jake Leach, Dexcom’s president and CEO, adding that the performance enabled the company to again raise its full-year revenue and operating margin guidance.

Management scheduled a conference call for 4:30 p.m. Eastern Time on October 29, 2026, with a webcast available through the events section of the Dexcom Investor Relations website.